Section 1: Introduction
1.1 Background to the Study
Research conducted for the Ministry of Agriculture and Forestry on factors influencing the successful emergence of new industries (Greer, Greer and Zwart, 2001) suggested that inadequate access to information has been a significant barrier to the development of such industries in New Zealand. Difficulties in obtaining information, even where such information does exist, have also been reported to the researchers during the course of other studies they have conducted.
There have been examples where pursuing an inappropriate pathway to development, because insufficient information was available on which to define a more appropriate path, has led to poor resource allocation at the individual and industry levels. Market failure in information provision is perceived as a significant barrier to the development of new and emerging industries that have the potential to contribute to the sustainable use of resources in the primary sector. Thus, research that identifies the information needs of industry, and develops a framework of information provision, would contribute to successful industry emergence and the sustainable and efficient use of resources by industry.
As part of the Operational Research funded by the Ministry of Agriculture and Forestry (MAF) for the 2000/01 year a study was commissioned that had the following objectives:
- develop a clear definition of the information needs of existing and potential producers in emerging industries;
- provide a detailed statement of the type of information needed by industry leaders on the funding, structure and organisation of emerging industries and the best method of delivering such information;
- develop and test a framework for reporting information relevant to emerging industries that meets the needs of industry participants, industry leaders and Government.
The previous study showed that new industry participants require a wide range of information at the outset to assist them in making investment and management decisions. The leaders of new industries require information on industry structure and gaining access to assistance in, and funding for, the wide range of tasks with which they are faced in helping to establish a new industry on a sound footing.
Ongoing access to the updated information collated within this framework developed by this research will:
- enable MAF to develop appropriate policy advice to government on barriers to industry development and possible policy responses;
- provide the potential entrants to, and leadership of, new agricultural/horticultural sector industries with information to assist them in decision making and in the more efficient use of resources.
1.2 The Study Methodology
The information needs of industry participants were established by means of a series of focus groups of new industry participants held in Balclutha, Invercargill, Palmerston North, Hastings and Christchurch, during March and April 2001. The information needs of industry leadership were canvassed by means of interviews with the leadership of new industries, professional staff of established industry organisations and of organisations that deal with the leaders of new industries.
The information gathered during the focus groups and interviews, combined with information from other sources, was used to formulate information frameworks for both industry leaders and potential participants. The information required to "fill in" the industry leaders’ framework did not differ by industry and a single information document was prepared. The framework of information for participants in new industries was tested by compiling information documents for a plant-based new industry, the olive industry, and a new animal industry, the alpaca industry.
1.3 Organisation of the Report
The information needs of industry participants, including a summary of the results of the series of focus groups, are discussed in Section 2 of this report while the information needs of the leadership of new industries, derived from discussions with industry leaders are described in Section 3. Section 4 sets out the information frameworks for both industry leaders and potential participants. Appendix 1 contains the information prepared to assist the leadership of new industry organisations, and Appendices 2 and 3, the information for potential participants of the olive and alpaca industries. Detailed reports of the individual focus groups are provided in Appendix 4 and Appendix 5 contains the list of industry leaders and others interviewed during the course of the study.
